Manual cryptocurrency exchanges Binance is in the final stages of negotiations for the purchase of CoinMarketCap. This is the legendary service that shows value of cryptocurrencies, their indicators, stock exchanges and other important data. According to insiders, the purchase price will be $ 400 million. It is expected that the official outcome of the negotiations will be published this week.
CoinMarketCap is one of the most popular services to track data about cryptocurrencies and exchanges. We have our own mobile application, in addition to the information used by many other resources. Binance walked for a long time to conclude the purchase transaction. We will remind, earlier this year the Director General of the exchange Chanpen Zhao said that "very soon" customers will learn about two important mergers that have a "serious impact" on the stock exchange. It seems that this is one of them.
Who bought CoinMarketCap
Journalists news media, The Block that received anonymous information about the deal, asked the representatives of the Binance and CoinMarketCap to comment on this issue. So far, all the details of the deal are unknown, but employees of the platforms prefer to remain silent.
However, hope for a response from the representatives of the Binance reporters The Block was. Recall, at the time, the founder of the cryptocurrency exchanges have a fight with site staff. Latest published news about police RAID in the "Shanghai office of Bianca", which eventually turned out to be untrue. Chanpen Zhao is not appreciated and even promised to sue for the resource. In addition, he has blocked many members of the site on Twitter. Part of cryptocommunist then did not appreciate this attitude and considered it an attempt to censor the actions of journalists.
It should be noted that CoinMarketCap has to date not attracted the funding was “completely financially independent”. It approves the strategic Director of platform Karelin Chan. In October last year, she gave an interview to The Block in which they stated that “the company is still able to grow and scale their own”.
Another of the results of the work Binance: Binance, presented a debit card to pay for cryptocurrency in any store in the world.
According to SimilarWeb, the number of unique visitors CoinMarketCap in the last six months reached 207.2 million people. Among all trackers, the price of cryptocurrency that is CoinMarketCap is the most popular platform. She has a good reputation, a huge user base and popularity within the community.
Presumably the purpose of the transaction was to attract traffic to Binance, because over the past six months at the exchange was 113.8 million unique visitors. This is almost two times less than CoinMarketCap.
So, the exchange would be able to find new traders and hontarov.
But among exchanges Binance holds the first place in popularity — to the trading platform accounts for about 22 percent of the traffic of all traders. Second place goes to Coinbase, with 20 percent people of the total number of visitors.
Buying CoinMarketCap is not the first acquisition of leadership Binance. Over the past year, exchange “took under his wing” at least nine firms, but only a small part of these transactions was publicly announced.
We will remind, the largest deal in the history of the crypts is to buy exchange Poloniex Circle company for $ 400 million. Another one large partnership can be considered the acquisition of the exchange Bitstamp Belgian investment firm NXMH, too, for $ 400 million.
The Block Larry Cermak asked how Binance will solve the problem of conflict of interest. He also noted that CoinMarketCap collects traffic from huge masses of people, far from the topic of cryptocurrencies.
I wonder how Binance is going to deal with the obvious conflict of interest. CoinMarketCap will no longer be impartial (even though they didn’t already have a good reputation). What kills though CoinMarketCap at their SEO. They drive traffic from a ton of non-crypto folks
— Larry Cermak (@lawmaster) March 31, 2020
He also did not forget about blocking on Twitter from Carpena Zhao. Says, wish they talked about the major announcement of the year a week before the scheduled announcement, and Zhao, because they know.
I also feel a little bit bad for CZ. He blocks The Block and most of its employees and we just broke his biggest news of the year a week early. Poor CZ 😢
— Larry Cermak (@lawmaster) March 31, 2020
The author of the satirical cryptonote channel Coin Jazeera suggested Canino Zhao and Justin Sana to buy it. Says you can buy us, lock, or simply close. Still at stake is millions of dollars.
$400 MILLION!? @cz_binance @justinsuntron We’re also for sale. If you want to buy us to control the media or shut us down, we’re ready to sell. CPC money is OK 🇨🇳👌🏼 We’re serious, DMS are open! https://t.co/DGxQXwe5WD
— Coin Jazeera 🇺🇸 (@CoinJazeera) March 31, 2020
User under the name SpydrZero believes that the news is bad for the niche cryptocurrency. Still, CMC is an independent resource. But if it will buy the cryptocurrency company, then some projects may be bias.
No disrespect to Binance but this isn’t good at all for crypto. CMC is like the independent listing site for all crypto. When you have a crypto exchange / company take it over, who’s to say they will not have implicit biases when listing projects? Whatever tho, money talks right
— SpydrZero (@SpydrZeroBTC) March 31, 2020
Obviously, a potential negative with respect to the purchase attributable to the popularity and scale of CoinMarketCap. Users are concerned that the exchange may use the platform to promote your token and projects. And as for the CMC comes a lot of beginners, it supposedly can fool them. We believe that the exchange is unlikely to seriously get into the job site after purchase. Well, in the worst case for the platform will simply be a replacement. Most likely, it will be some of these services.
Anyway, the acquisition of CoinMarketCap is definitely a plus in the Treasury Binance. In the long run, the deal should have a positive impact on the financial Affairs of the exchange and to attract new people. Let me remind you, you can use our ratings of cryptocurrency as an alternative to CoinMarketCap. Also don’t forget to join our cryptodata.
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